Wall Street’s heavy losses on lingering fears over Europe’s debt problems set to rub-off on Singapore shares, according to Dow Jones.

The STI may fall below 2,700 for first time in 3 months after closing down 0.8% at 2,753.51, with support tipped at year-to-date low of 2,665 set in February.

While commodity, shipping stocks bore brunt of yesterday’s selling among STI components on concerns euro-zone problems may derail global economic growth, hurt commodity prices, weakness today expected to be more broad-based.

“This euro-zone saga is turning into a bad horror movie. You think the monster is dead but it keeps coming back,” says Phillip Securities economist Joshua Tan, “we think something is about to give as Libor-OIS (overnight index swap) spreads continue to widen, signifying that banks are weary of lending to each other.”

Noble Group (N21.SG) ends down 5.0% at $1.70, Olam (O32.SG) off 2.1% at $2.34, Wilmar (F34.SG) off 4.5% at $5.50, Neptune Orient Lines (N03.SG) off 3.1% at $1.90.